The massive price drop in the iPhone seems to have miffed the iPhone lovers who bought one early. In what must be an unprecedented move, Apple are going to offer a $100 rebate to existing owners; slashing the effective discount in half. Lest you think this is a $100m gift in shareholder value remember that, if Apple had a reputation for this type of discounting, it would not be able to generate the initial release hype it does. Now, it can have its cake and eat it too. Fear that buying a new iPod Touch now will leave you with the pain of discount later? Then fear not. However, that also means that Apple doesn’t have to fear it either. Why not price high now and commit to rebates? May turn out that the high price was the way to go. Makes the ‘gift’ aspect seem hardly giving doesn’t it.
The rebate is for Apple purchases but for iPhone owners that is pretty much the equivalent of cash. Ironically, they will probably use it to download episodes of The Office. So the big winner will be NBC.
Actually, that reminds me of a great The Onion story that I would love to see written:
NBC cancels broadcasting
Citing increased piracy of broadcast television, NBC will not broadcast any television in the fall season. “We need to fully protect our intellectual property from illegal use,” said an NBC spokesman, “for too long people have been able to watch our programs in a way we didn’t intend. The only way to stop it is to stop broadcasting altogether.”